Indecisive midterms, crypto collapse, Disney woe

By Geoffrey Smith

-- Ron DeSantis emerges as the biggest winner from the U.S. midterm elections,Top 10 foreign exchange dealers in the world but an expected tide of Republican victories fails to materialize. Walt falls in premarket on fears of bigger startup losses for its streaming services and inflation impacts on its theme parks. Bitcoin falls to a two-year low as FTX's near-collapse rattles the crypto universe, and the U.S. produces reports on oil inventories and world grain supply and demand. Here's what you need to know in financial markets on Wednesday, 9th November.

1. DeSantis cruises as GOP edges toward House win; Dems flip key Pennsylvania Senate seat

Florida Governor Ron DeSantis emerged as the big winner from the midterm elections, securing re-election in style as a number and putting him in poll position for the GOP’s presidential candidacy in 2024.

By contrast, a number of Republican candidates with the high-profile backing of Donald Trump – including gubernatorial candidates Don Bolduc and Doug Mastriano - fared relatively weakly.

Democrat John Fetterman’s victory in a key Pennsylvania race left GOP hopes of regaining control of the Senate hanging by a thread, but its gains elsewhere appeared likely to be big enough to regain control of the House of Representatives.

2. Disney hurt by streaming losses

Walt Disney (NYSE:) stock in premarket after the entertainment giant reported bigger-than-expected losses at its Disney+ streaming operation.

Management said the loss, which more than doubled from a year earlier to $1.47 billion, will likely narrow from here on as the operation scales up, although subscriber growth slowed after it lost the rights to the Indian Premier League cricket competition.

Weaker-than-expected performances by its theme parks and traditional TV operations meant that operating profit – at $1.6 billion – was 30% below consensus forecasts.

3. Stocks set to open marginally lower; Meta confirms huge layoffs

U.S. stocks are set to open lower later, with the Disney disappointment, along with the prospect of two years policy paralysis in Washington, weighing on sentiment.

By contrast, there was support from Meta Platforms (NASDAQ:), which confirmed it will lay off some 11,000 staff – 13% of its total – as it draws a line under a period of throwing money at longshot investments in the so-called Metaverse.

By 6:30 ET, were down 89 points or 0.3%, while were down 0.1%, and were effectively unchanged. Meta stock was up 3.8%.

The economic calendar includes weekly updates on and , while the Federal Reserve’s and are both due to speak.

Earnings season shifts down a gear, with (NYSE:) (early) and Wynn Resorts (NASDAQ:) (late) among the few highlights.

4. Bitcoin hits two-year low as Binance deal fails to stop FTT rout

slumped to its lowest in more than two years as the crypto space reeled from the latest crisis of confidence triggered by the near-collapse of FTX.

Binance, the world’s largest crypto platform, had agreed to buy FTX’s non-U.S. operations on Tuesday after FTX had been forced by a massive depositor run to suspend client withdrawals.

, FTX’s native token, crumpled nonetheless. It lost nearly 80% after a warning from Binance CEO Changpeng Zhao that the deal will only go ahead if his due diligence doesn’t turn up any unpleasant surprises.

5. Oil lower on weak Chinese data, U.S. stock build

Crude oil prices fell to their lowest in a week after Chinese inflation data again surprised to the downside, highlighting the economic weakness of the world’s biggest oil importer. edged up only 0.1%, while fell in year-on-year terms for the first time in nearly two years.

By 06:40 ET, were down 0.9% at $88.11, while were down 0.8% at $94.57 a barrel.

Sentiment was also hit by the reporting a surprise 5.6 million barrel build in crude stocks last week. The U.S. government releases its at 10:30 ET, while the Department of Agriculture will also release its of world agricultural markets later.

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